Behavox partners with Cloud9 to provide comprehensive monitoring for voice
trading in the capital markets

Behavox, a compliance software company focused
on the financial services sector, and Cloud9 Technologies, a cloud-based
voice trading communication platform for financial firms and institutional
traders, announced a joint partnership today. The collaboration provides an
immediate solution for firms facing heightened regulatory requirements and
adds significant value for those with no existing compliance solution, as
well as those with inadequate legacy approaches.

Behavox is valued in the market for its expertise in machine learning,
developing robust algorithms based on 16 years of enforcement cases against
traders and banks worldwide. Behavox utilizes these algorithms with sound
processing, to enable keyword detection, highlight variants in
emotion/sentiment, and tie voice records to data points that signal market
abuse, insider threat, collusion, or reckless behavior. This technology
enables an extreme reduction in false positives as well as compliance costs.

Cloud9 is currently the only cloud-based communications solution for the
capital markets with a comprehensive strategy around analytics and voice
capture. The platform delivers value by collecting voice recordings as well
as enhanced call metadata– adding additional insight not available with
legacy services. Cloud9’s partnership with Behavox supports their ongoing
strategy to provide their customers with a full suite of monitoring,
compliance and analytics solutions through integration with leading
third-party trading technology providers capable of leveraging Cloud9’s
generated voice and metadata.

“At Cloud9, we have created a partner ecosystem that enables us to provide
enhanced compliance, analytics and trader workflow capabilities around voice
and translate it into actionable data – a feature that was previously
unavailable to firms,” said Cloud9 Technologies CEO, Jerry Starr. “Partnering
with an innovator like Behavox greatly benefits our customers and enables
them to use their recordings and advanced metadata to manage both
operational and reputational risk.”

“Cloud9 is a logical partner for us. The unique combination of their
enhanced metadata and data capture with the superior analytics capabilities
of Behavox will enable firms to gain rich insights into trader behavior
like never before,” said Behavox Founder and CEO, Erkin Adylov. “This is a
significant development and another logical step towards enhancing and
automating data gathering in the compliance process.”

Compliance remains a critical consideration for financial firms as they try
to keep up with regulatory changes such as MiFID II being effective from 2018,
increased reporting and data capture requirements, as well as the ongoing
avoidance of corporate and individual liability.

As a result, firms have tried to solve the problem by investing millions of
dollars in compliance, particularly on back office investigators, lawyers,
and intelligence officers to sort through and monitor trader communications.
Market demand is placing a premium on the quality, processing, ingestion,
retrieval and archiving of voice data for front office and compliance purposes.
The Tabb Group estimates the global compliance market is at $2.5bn now and
still growing.

Hosted in the cloud and distributed in a SaaS model, Cloud9 provides a
cost-effective solution for firms, helping them save up to 50% on trader
voice costs while generating unique, proprietary content critical for
advanced analytics and compliance. By establishing interoperability with
Behavox, mutual customers experience a significant reduction in compliance
expenses, as well as communications costs, and gain a secure, future-proof
network for the management of voice trading, regulatory compliance and
advanced voice analytics.

About Cloud9 Technologies

Cloud9 Technologies is a cloud communications and analytics service provider
that delivers high performance voice and collaboration services designed for
the unique functional and compliance needs of institutional traders. The
company delivers its services from the cloud using software applications
that leverage the Internet and advanced WebRTC technologies.

Cloud9 connects counterparties across all asset classes via a cloud-based
communication platform that features end-to-end security, encryption and
advanced compliance capabilities. Cloud9 eliminates the infrastructure and
expense associated with legacy hardware and telecommunication based
solutions. Our customer base includes top brokerages, sell-side firms, and
tier one banks. For more information, visit: www.c9tec.com

About Behavox

Behavox is an enterprise compliance software company providing holistic
employee surveillance solutions. The solutions allow Senior Management,
Risk & Compliance Officers to detect cases of market abuse, insider threat,
collusion and reckless behavior in real time. Through the combination of
cutting-edge technology, thought leadership and industry collaboration, we
have created a Risk and Compliance ecosystem which transforms the way that
firms conduct surveillance and supervise risk within their business. Behavox
provides an effective and scalable solution that delivers compliance with
finance regulations such as Dodd Frank, MAR, FCPA, SMR & MIFID II, and meets
the requirements of the most exacting regulators (FINRA, CFTC, FCA etc).
www.behavox.com

Behavox reinvents regulatory compliance with collaborative exchange

18 January 2017

Behavox is transforming capital markets compliance with the introduction of the Conduct Risk Exchange
(CRX), which facilitates the sharing of detection algorithms between institutions and regulators, creating
the market standard to collaboratively protect against misconduct and other generic risks.

The approach is exactly equivalent to the development of anti-virus software; institutions with more
learning and precedent in richer data sets contribute their algorithms and allow those with different
experiences to benefit. Regulators can instantly distribute their own unique “knowledge” through the
platform to the whole market for the first time. It is the perfect example of collaboration between
regulated and regulators, in a non-competitive environment.

Behavox on course for Level 2 STAR Attestation from the Cloud Security Alliance

04 January 2017

The Cloud Security Alliance (CSA) has announced that Behavox is on course for Level 2 Security, Trust & Assurance Registry (STAR) Attestation, and that Schellman & Co LLC has begun its rigorous third-party independent assessment, conducting an examination of the entirety of Behavox’s compliance platform.

Behavox has already published its CSA STAR Self-Assessment documenting the extent to which its security controls and procedures are already compliant with the CSA’s required standards - the path to full compliance and third party audit confirmation is the next logical step for the business in 2017.

“This is an important certification for Behavox and we are pleased to be working with the CSA which has set the worldwide industry standard for cloud transparency and security,” said Erkin Adylov, the CEO of Behavox. “With its rigorous approach to audit, the additional requirements beyond other standards such as SOC2, and the ability to gain this attestation through a credible third party audit arbiter like Schellman, our customers can be assured that we have the most stringent security controls and policies for cloud environments. With membership comes the need for continuous update and annual testing - there is no better evidence of our commitment to the highest standards of data security.’’

The Cloud Security Alliance (CSA) is the world’s leading organization dedicated to defining and raising awareness of best practices to help ensure a secure cloud computing environment.

Behavox accelerates the opening of its NY office due to new client wins

31 October 2016

Behavox, the specialist AI enterprise software company offering compliance solutions for
capital markets, has brought forward the opening of its office in New York, USA, to meet
growing demand from new and existing clients that are based there.

The new office will open on 31st October, 2016 and is in a prime central location in
Manhattan to facilitate servicing of new and existing clients based on Wall St, in Jersey City
and Midtown. The new office address is: 110 William St, New York, NY 10038.

Behavox was delighted to receive the go-ahead from multiple new clients in NY at the end of
the last quarter – these are all significant players in the Investment Banking and Asset
Management sectors. The business is also deploying its software with its global clients that
have operations in the US.

Behavox is transferring significant elements of its operations and implementation team to the
US, as well as parts of its business development team. The expansion plans for the US
operation are at an advanced stage, with several more key staff set to join imminently.
Further hiring is planned for the coming months to meet the current and future levels of
demand.

Plans are already under way for the opening of offices in Asia and Continental Europe in
order to meet demand in these regions, as well as service existing clients with global
operations.

Behavox is an enterprise compliance software company providing holistic employee surveillance solutions.
Our platform allows Senior Management, Risk & Compliance Officers to detect cases of market abuse,
insider threat, collusion and reckless behavior in real time. Through the combination of cutting-edge
technology, thought leadership and industry collaboration, we have created a Risk and Compliance
ecosystem which transforms the way that firms conduct surveillance and supervise risk within their
business. Our platform is designed to highlight specific types of conduct as defined by the culture of each
institution.

We provide an effective and scalable solution that delivers compliance with finance regulations such as
Dodd Frank, MAR, FCPA, SMR & MIFID II. By linking structured internal communication (voice, email, chat
etc.) data with other internal unstructured data (GPS, browser history etc.), users can discover, visualize and
quantify relationships between people, organizations and content. In addition to this, the Behavox machine
learning algorithms compare this data to a series of proprietary scenarios developed by our regulatory
experts, which can also be configured to meet existing and future institutional policies.

Behavox wins Financial News Capital Markets Start-Up of the Year 2016

14 October 2016

Behavox was delighted to receive the Capital Markets Start-Up of the Year (founded
in the last three years) category at the 2016 Financial News Awards for Excellence
presented at the V&A Museum in London on 12th October.

Erkin Adylov, CEO of Behavox, received the award in person and commented:

"we really value the recognition that this award brings, and hope that this is
the first of many as we continue our growth. What is most gratifying is the fact
that 150 senior representatives from the industry were the judges for our
category – that sort of validation means a huge amount to us."

Behavox raises Series A investment from Hoxton Ventures and Promus Ventures

13 July 2016

Behavox is pleased to announce its first institutional round of capital, led by London-based Hoxton Ventures and Chicago-based Promus Ventures.

After two years of successful pilots and client development, we decided to seek external investment to expand globally, deepen our talent base to process new client engagement, and introduce our novel collaborative approach to industry-wide compliance.

Behavox team continue to pursue the highest standards of excellence in its core product development, its unparalleled client service, and market-leading approach to compliance practice. This round of funding lays the foundation for significant scale and stability.

Behavox research partners applauded for release of paper on accurate detection of
whispering in voice calls using deep neural networks

22 June 2016

EUSIPCO 2016 has officially recognized the validity of progressive research
completed by partners of Behavox from the audio research group of Tampere
University of Technology in Finland.

Their paper on the detection of whispering and other vocal fluctuation on voice
calls was accepted by EUSIPCO 2016; it was given favorable comment in
terms of its unique scientific approach, as well as the high level of detection
accuracy that the algorithms can deliver.

The paper proposes a detection algorithm for whispered speech over
telephone line based on deep neural networks. The researchers presented a
solution that is resistant to significant background noise and also boasts
accuracy rates for detection of 91.8%. The reviewers of the paper added that
given the extremely low signal-to- distortion ratio, the detection results were
impressive.

Detection of whispered speech in the presence of high levels of background
noise has applications in fraudulent behavior recognition. For instance, it can
serve as an indicator of possible insider trading. The research team continues
to apply itself to new advances in detection of keywords and emotion to
improve accuracy and detection rates. New improvements will be announced
later this year.

Behavox has used these voice detection algorithms successfully in its
deployment with financial services clients that need state-of- the-art monitoring
systems to protect their institutions against forms of market abuse and generic
insider threat.

The paper, first published in the Proceedings of the 24th European Signal
Processing Conference (EUSIPCO-2016) in 2016 by EURASIP, can be read
in full here:

Behavox research collaboration with University of Warwick and Tampere University of
Technology

Behavox, the foremost software and services company to provide holistic employee
surveillance solutions, is delighted to announce a groundbreaking research
collaboration with both the University of Warwick (UK) and Tampere University of
Technology (Finland). This alliance will refine Behavox’s world-class employee
behavioral profiling and illicit behavior detection solutions.

Collaboration with the University of Warwick Computer Science department and
Behavioral Science Group will focus mainly on decision-making analysis. The aim is
to further develop sophisticated behavioral profiling methods, and produce accurate
and versatile models of
illicit behavior.

Warwick’s Computer Science Department is well known for its research in digital
forensics, analysis of social media, and in algorithms for streaming data and large
graphs; recent work with the Warwick Business School has seen it combine this
expertise with Warwick’s behavioral scientists, who themselves advise the Cabinet
Office’s Behavioral Insight Team, popularly known as the ‘nudge unit’.

Furthermore, the Behavioral Science Group is currently working on the ‘New Economic
Models in the Digital Economy’ project that aims to develop an open Big Data
platform that mines, merges and models data on human activity, allowing exploration
of relationships between these information flows and real world processes.

The goal of the project is investigation of the opportunities that massive
information streams offer in gaining insight into early stages of collective
decision-making. The project has so far received grants funded by the Research
Council’s UK Digital Economy Programme via the Engineering and Physical Sciences
Research Council.

Collaboration with the Tampere University of Technology Audio Research Group will
refine secretive behavior detection methods in voice communications and the
mitigation of the impact of a ‘noisy’ work environment. The objective is to maximize
the advantage presented by non-verbal behavioral features of human voice interaction
in behavioral profiling and illicit behavior detection. The Audio Research Group has
recently worked on novel recognition approaches based on sparse non-negative
spectrogram representations of noisy speech signals. This approach has received
state-of-the-art recognition performance. The group collaborates with Radboud
University Nijmegen, Carnegie Mellon University, and Aalto University speech
recognition groups. This collaboration has resulted in the publication of several
prominent joint scientific papers and books recently.

Combining this research with the commercial application of its existing product,
Behavox is now placed perfectly to continue to deliver its next-generation employee
behavioral profiling and illicit behavior detection solution for companies and
government bodies that are aiming to adopt and enforce the highest standards of
professional behavior.

Erkin Adylov, Chief Executive of Behavox, commented:

"Scientific collaboration with leading research-driven universities both at home
and overseas is a major direction of R&D operations at Behavox. We have
developed a solid research base in Big Data, machine learning and voice/natural
language processing. Collaboration with the University of Warwick and Tampere
University of Technology is a great opportunity to share findings, augment our
knowledge and develop even more refined models and algorithms to detect and
prevent illicit behavior for the ultimate benefit of society."

Behavox continues rapid expansion and appoints Paul Dean as its Global Head of Product

12 January 2016

Behavox has ramped up its growth with another crucial hire, and despite strong
competition from investment banks, has lured industry heavyweight, Paul Dean, to
head up its product side. Paul will work closely with current investment banking and
buy-side customers to refine the company’s behavioral analytics solutions, designed
for the risk management and compliance divisions across capital markets.

Paul has extensive and relevant experience as a pioneer in software product
development for the financial services sector. He co-founded Orchestria where he was
also head of product for today’s market-leading communication surveillance solution,
which is still used as an industry standard by the major global investment banks.
His latest role was as the team lead building out the communication surveillance
systems within RBS.

Paul’s motivation for joining Behavox was simple and compelling: ‘the regulatory
demand on today’s financial institutions is increasingly towards proactive
identification of market abuse and the management of the multiple risks of insider
threat. The market can no longer sustain simple lexicon-based filtering of
individual communications or voice recordings to vainly try and detect malfeasance
by the broker/trader community, and the regulators are justifiably demanding more
sophisticated use of advanced technology like Behavox’.

‘Behavox is the only solution that comes close to offering the cross-platform
modelling and statistical analysis required to effectively identify potential
misconduct. I am very excited to join this incredibly dynamic team and be at the
forefront of developing the next generation of risk management and compliance
solutions.’

Erkin Adylov, CEO of Behavox, showed his delight at Paul joining the team:
‘having Paul’s knowledge and experience in the team is a huge asset to the business.
The customers are already starting to appreciate the benefits he brings and it makes
our deployment and adaptation of the product suite a much more manageable and
professional process. We will continue to make hires like this but we now have a
fantastic, rounded team that is beyond compare for such a specialised application’.

Behavox offers state of the art behavioral analytics software that is designed
specifically for the capital markets trading environment. The software allows
data and compliance teams to focus on data quality, as well as identify anomalies in
trading behavior that may be instances of collusion, insider trading and other
manipulative forms of market abuse. The software has been proven to radically
improve the efficiency of surveillance teams and detect foul play that other legacy
systems are not equipped to notice. Behavox is unique in the surveillance space,
offering a blend of expertise from research and academia, an unbeatable development
team, as well as extensive front office experience and deep practical compliance and
product development knowledge.

Behavox featured in City A.M.

11 January 2016

Rob Moffatt, a partner at Balderton Capital, wrote an interesting article in City
A.M. with his predictions for Fintech 2016. He argues ‘fintech’ is now too generic a
term, insurance is still ripe for disruption, and most shocking of all that
compliance has finally got sexy. Read more here about the
CaaS (compliance as a Service) companies he thinks may hit it big, one of which is
Behavox.

Behavox appoints Alex Viall to new role as Head of Regulatory Intelligence

4 December 2015

Behavox has announced its most recent appointment in a deliberate move to
significantly bolster its connection to the compliance teams at the largest firms in
the financial services space.

Alex Viall started at Behavox in October as the new Head of Regulatory Intelligence
where he will lead their regulatory team that has direct relationships with the
compliance and risk teams at major investment banks, hedge funds and trading houses.
Alex will also lead the growing relationships with regulators whose interest in the
technology that Behavox has developed is obvious.

Alex was formerly a regulator in the UK (FSA) and a compliance officer at a global
securities house. He co-founded Complinet in 1997 where he was integral to the
design of the products that Complinet created specifically for the compliance
departments of global investment banks, brokerages and asset managers.

Alex was a thought leader in compliance technology as Complinet became the foremost
resource for compliance professionals in financial services. Alex left Complinet in
2010 when the business was acquired by Thomson Reuters, after spending 10 years in
New York servicing the North American market. Industry professionals in more than
1,900 firms across 81 countries rely on Complinet for ongoing analysis and solutions
that help them keep pace with financial services regulation.

Behavox offers state of the art behavioral analytics
software that is designed specifically for the capital markets trading environment.
The software allows data and compliance teams to focus on data quality, as well as
identify anomalies in trading behavior that may be instances of collusion, insider
trading and other manipulative forms of market abuse. The software has been proven
to radically improve the efficiency of surveillance teams and detect foul play that
other legacy systems are not equipped to notice. Behavox is unique in the
surveillance space, offering a blend of expertise from research and academia, an
unbeatable development team, as well as extensive front office experience and deep
practical compliance and product development knowledge.

Behavox featured in Top 15 most exciting startups

August 4, 2015

In his Business Insider article, Oscar Williams-Grut examines startups based at
Level39 technology accelerator that have the biggest potential to become the
next TransferWise.

Behavox is featured in the list owing to an extremely experienced team of
industry captains in both technology and finance, vote of confidence from the
industry leaders in IT and significant traction with large financial
institutions.

Behavox reviewed by Business Insider, eFinancialCareers and Bloomberg View

May 26, 2015

In her Business Insider article economics reporter Shane Ferro examines how
Behavox can be used to proactively identify and stop rogue traders. Full article
available from Business Insider website.

Sarah Butcher, editor at eFinancialCareers, looks at Behavox in the context of
reorganisation plans of major investment banks aimed at cost savings. Full
article available from eFinancialCareers website.

Bloomberg View columnist Matt Levine in his article discusses how efforts to
measure and monitor behavior and bank culture may lead to attempts to game those
measurements and resilience of Behavox to such attempts. Full article is
available from Bloomberg View website.

Behavox uses big data to monitor rogue traders - Euromoney

May 21, 2015

In his Euromoney article editorial director Peter Lee examines the tightening grip of
financial services firms over their employees' behavior as a consequence of major
misconduct scandals in the industry like Libor and FX market rigging.

Behavox is featured as an innovative fintech company aiming to take this surveillance
to an unprecedented level with sophisticated behavioral analysis.

Erkin Adylov, Behavox CEO, is quoted saying:

"The difficulty for any trading-desk manager is that each trader may have 400 to
500 approved contacts. If he’s running a desk with 20 traders, that’s
communications with 10,000 contacts the manager has to keep an eye on. You need
a compliance system to do that"

Cloud Platform grant from Google

The proceeds of the grant will be used to deploy Behavox applications on Google’s
highly-scalable and reliable infrastructure in order to to deliver fast, consistent
and scalable performance.

Commenting on the announcement, Erkin Adylov, Behavox CEO, said:

"The grant will allow us to scale up to handle the most demanding Internet-scale
workloads and will provide us with multiple points of presence across the globe
to meet the demands and expectations of international financial institutions."